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Türkiye’s Economic Resilience and Growth: A Positive Outlook That Bodes Well for Citizenship Investors

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CIP Turkey
IMI Official Partner

In a remarkable display of economic resilience and strategic growth, Türkiye has been making significant strides in its financial and investment landscape. Recent developments have showcased the country’s ability to attract foreign investment and implement effective monetary policies, positioning Türkiye as a promising destination for international investors.

Moody’s Upgrades Türkiye’s Outlook

In a significant move, Moody’s has revised Türkiye’s outlook from stable to positive, acknowledging the country’s decisive shift towards orthodox monetary policy. This positive revision is a testament to the effectiveness of Türkiye’s economic strategies, particularly in managing inflation and enhancing monetary credibility.

The revision also reflects confidence in Türkiye’s ability to address its external imbalances and rebuild the central bank’s foreign-currency reserves, further stabilizing its economy.

Central Bank’s Commitment to Disinflation

Central Bank Governor Hafize Gaye Erkan has reaffirmed Türkiye’s commitment to achieving disinflation, a key indicator of economic stability. Addressing over 2,000 executives at an event in New York, Erkan emphasized the significant improvement in the inflation outlook and the determination to maintain price stability.

The Central Bank’s efforts to increase foreign exchange reserves have shown considerable progress, bolstering investor confidence in Türkiye’s economic management.

Robust Foreign Investment in Key Sectors

Türkiye continues to attract substantial foreign direct investments (FDI), particularly in the finance and insurance sectors. In November 2023 alone, the country recorded $642 million in equity capital inflows, with banking investments playing a pivotal role. The wholesale and retail trade sectors also witnessed a notable 14 percent share of the total equity capital inflows.

The country’s ability to draw investments from diverse regions, including significant contributions from Middle Eastern countries like Qatar, as well as from European Union member states, underscores its appeal as a global investment hub. The manufacturing sector, especially in computers, electronics, and optical equipment, has also seen a surge in foreign investments, highlighting Türkiye’s growing prominence in technology and innovation.

Real Estate and Service Sectors Thriving

Türkiye’s real estate sector has been a major contributor to FDI, accounting for 36 percent of the total inflows in the first 11 months of 2023. The sale of real estate to foreign nationals has been a key driver, reflecting the country’s attractiveness as a destination for international property investors.

The Opportune Moment

Türkiye’s positive economic trajectory is a clear indication of its robust financial policies and strategic investment initiatives. The country’s ability to navigate economic challenges and attract foreign investments across various sectors demonstrates its resilience and potential for sustained growth.

With a favorable outlook from Moody’s and a commitment to monetary stability, Türkiye is well-positioned to continue its path of economic success and stability, making it an increasingly attractive destination for global investors.

If you’d like to learn more about investing in Turkey and gaining the country’s citizenship, contact us today.